Taiwan Tax Update December 2024

Value-added Tax 

• Ministry of Finance (“MOF”) issued tax ruling providing guideline for levying VAT on net consideration received by business entities providing in-game currency trading services
• MOF amends Business Tax Threshold for Small-Scale Business Entities 

Income Tax

• Increased tax deduction for salary expense related to new hire of domestic entry-level employees aged 24 and under, or aged 65 and above, and for increased salary expense of domestic entry-level employees must be included in basic income of a profit-seeking enterprise starting from January 1, 2024

Tax incentives

• Ministry of Economic Affairs (“MOEA”) and MOF announced amendments to sub-regulations under the “Act for Development of Small and Medium Enterprises”